Vyjádření krajského soudu k použití mezikvartilového rozpětí
 

Opinion of the Regional Court on the application of the interquartile range

The Regional Court in Hradec Králové, in a recent judgment[1], expressed its opinion on the use of the interquartile range in determining transfer prices that differs from previous judgments of the Supreme Administrative Court. 

In this context, the Regional Court stated that, although it is generally the case that the tax authorities strive to apply the most favourable procedure for taxpayers in tax proceedings, in the present case the tax administrator did not act contrary to this principle, as it only applied statistical methods that take into account the mean trend in order to eliminate extremes and inaccuracies and to establish the maximum possible comparability.

The Regional Court supported its decision by noting that the company itself had submitted a benchmarking analysis with a calculated interquartile range, which it referred to as being at arm's length. It also agreed with the reasons given by the tax authorities for using the interquartile range - the larger number of comparable companies (53) and ensuring maximum comparability by using appropriate statistical methods.

The appeal has been lodged, so let us be surprised how the Supreme Administrative Court will deal with the issue.

If you have any questions, please contact the authors of the article or the EY tax team with whom you regularly work.

Authors:

Lucie Karpíšková

Tibor Borodáč

[1] See the judgment of the Regional Court in Hradec Králové of 26 April 2023, No. 31 Af 21 / 2022 - 99